E1-22A. (Learning Objectives 3, 4: Apply the accounting equation; evaluate businessoperations) Collinswood Company’s comparative balance sheet at January 31, 2019, and2018, reports the following (in millions):2019 2018Total assets $77 $47Total liabilities 25 19RequirementsThe following are three situations related to Collinswood Company’s issuance of stock and declaration and payment of dividends during the year ended January 31, 2019. For each situation,use the accounting equation and what you know from the chapter about stockholders’ equity,common stock, and retained earnings to calculate the amount of Collinswood’s net income ornet loss during the year ended January 31, 2019.1. Collinswood issued $11 million of stock and declared no dividends.2. Collinswood issued no stock but declared dividends of $20 million.3. Collinswood issued $15 million of stock and declared dividends of $75 million.
E1-22A. (Learning Objectives 3, 4: Apply the
operations) Collinswood Company’s comparative
2018, reports the following (in millions):
2019 2018
Total assets $77 $47
Total liabilities 25 19
Requirements
The following are three situations related to Collinswood Company’s issuance of stock and declaration and payment of dividends during the year ended January 31, 2019. For each situation,
use the accounting equation and what you know from the chapter about
common stock, and
net loss during the year ended January 31, 2019.
1. Collinswood issued $11 million of stock and declared no dividends.
2. Collinswood issued no stock but declared dividends of $20 million.
3. Collinswood issued $15 million of stock and declared dividends of $75 million.
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